Canada’s draft 2019–2022 Federal Sustainable Development Strategy: Impacts on Clean Technology and Brownfield Development

The Government of Canada recently released the Draft 2019–2022 Federal Sustainable Development Strategy for public consultation and tabled the Government’s 2018 Progress Report of the 2016–2019 Federal Sustainable Development Strategy.

The draft Strategy sets out the Government of Canada’s environmental sustainability priorities, establishes goals and targets, and identifies actions that 42 departments and agencies across government will take to reduce greenhouse gas emissions from their operations and advance sustainable development across Canada.

Of interest to professionals in the environmental sector is some of the Government’s goals with respect to the greening of government. For example, the Government is aiming to reduce greenhouse gas emissions from federal government facilities and fleets by 40% by 2030 (with an aspiration to achieve this target by 2025) and 80% below 2005 levels by 2050. It also has the goal to divert at least 75% (by weight) of all non-hazardous operational waste (including plastic waste) by 2030, and divert at least 90% (by weight) of all construction and demolition waste (striving to achieve 100% by 2030), where supported by local infrastructure. The administrative fleet will be comprised of at least 80% zero-emission vehicles by 2030 according to the draft report.

With respect to real property, the proposed actions of the Canadian federal government include the following: (1) All new buildings and major building retrofits will prioritize low-carbon investments based on integrated design principles, and life-cycle and total cost-of-ownership assessments which incorporate shadow carbon pricing; (2) Minimize embodied carbon and the use of harmful materials in construction and renovation; and (3) Departments will adopt and deploy clean technologies and implement procedures to manage building operations and take advantage of programs to improve the environmental performance of their buildings.

For professionals involved in clean technology, the draft report calls for the implement of the Government’s pledge to double federal government investments in clean energy research, development and demonstration from 2015 levels of $387 million to $775 million by 2020.

The 2018 Progress Report shows how the Government of Canada is implementing the 2016–2019 Federal Sustainable Development Strategy, demonstrating that it is on track to meeting many of the commitments laid out in the Strategy. This includes highlighting the leadership role Canada has taken in working toward zero plastic waste and implementing measures to conserve marine areas, as well as actions on climate change.

With respect to clean technology, clean energy, and clean growth, the progress report touts the fact that through three consecutive federal budgets, the Government of Canada has made substantial investments in initiatives to support clean technology, clean energy and clean growth. These commitments include: (1) $2.3 billion in 2017 for clean technology and clean energy research, development, demonstration, adoption, commercialization and use; (2) $1.26 billion in Budget 2017 for the Strategic Innovation Fund; and (3) $4 billion in 2018 in Canada’s research and science infrastructure, much of which helps drive innovation towards a clean growth economy.

The draft Strategy updates the 2016–2019 Federal Sustainable Development Strategy, largely maintaining its aspirational goals while adding targets that reflect new initiatives, updating milestones with new priorities, and strengthening links to the 2030 Agenda for Sustainable Development. In all, 29 medium-term targets support the draft Strategy’s goals, along with 60 short-term milestones and clear action plans.

Among other results, the 2018 Progress Report shows that

  • from 2016 to 2017, greenhouse gas emissions from federal government operations were 28 per cent lower than in 2005 to 2006—more than halfway to the target to reduce emissions from federal buildings and fleets by 40 per cent of 2005 levels by 2030;
  • as of December 2017, close to 8 per cent of Canada’s coastal and marine areas were conserved; and
  • from 2017 to 2018, visits to national parks and marine conservation areas increased by 34 per cent above the 2010 to 2011 baseline levels.

Canadians have the opportunity to provide comments on the draft Strategy until early Spring 2019. For further information: Caroline Thériault, Press Secretary, Office of the Minister of Environment and Climate Change, 613-462-5473.

Ontario Government’s Plans on the Environment: Impact on Brownfield Development

The Ontario Government released a Made-in-Ontario Environment Plan in late 2018 in partially in response to criticism that it had no plan for addressing climate change after it cancelled the greenhouse gas (GHG) cap-and-trade program of the previous government. The plan includes several proposals that should be on interest to persons involved in brownfield development.

The Ontario government 52-page document (entitled (“Preserving and Protecting or Environment for Future Generations: A Made-in-Ontario Environment Plan”) commits to protecting air, lakes and rivers; addressing climate change; reducing litter and waste; and conserving land and greenspace. Many of the measures establish a direction but the details will have to be further developed.

With respect to contaminated sites and brownfields, the document talks about the “polluter pay”, and engaging environment business and entrepreneurs. However, it is lacking in details.

Generating GHG from Brownfield Projects

The Ontario government’s proposed replaced to the scraped GHG trading regulation is the Creating the Ontario Carbon Fund. While details are to be worked out, the plan proposes to use $400M of government funding with the aim of leveraging additional private funds on a 4:1 basis to support “investment in clean technologies that are commercially viable.” The fund will also support a “reverse auction” model whereby emitters will “bid” for funding to support their GHG reduction projects.

There is a possibility that developers involved in brownfield redevelopment could be eligible for government funding depending on if clean technologies are employed in the clean-up and GHG reductions are realized versus the traditional dig-and-dump approach to site clean-up.

2010 Photo of the former Kitchener Frame Building (Photo Credit: Philip Walker/Record staff)

Streamlined environmental approvals

The Made-in-Ontario Plan notes that environmental approvals should be prioritized for businesses that want to implement low GHG technology or approaches. This is the latest promise from the Ontario government to speed up the approval process.

Seasoned veterans in the environmental sector remember similar promises made the government on fast-tracked approvals. There are still those who remember the Environmental Leaders Program in which speedy approval was promised to companies that committed to above-compliance environmental activities and targets.

With respect to this latest promise on speedy approvals, the document is silent on if “speed” will be applied to the Environment Ministry review of site specific risk assessments (SSRA’s) that are submitted to the Ontario Environment Ministry for approval instead of following the generic clean-up standards.

Measures to promote healthy, clean soils

The Made-in-Ontario Plan plan commits to “revise the brownfield regulation and record of site condition guide” as part of a basket of measures to promote clean soils. Again, the document is lacking in details.

The previous Ontario government had proposed reasonable changes to the Record of Site Condition Regulations (O. Reg. 153/04). One important aspect of the proposed change is related to road-salt impacts on a property. As the regulations currently stands, road salt-related impacts can only be exempted from clean-up if it can be proven they are related to the application of de-icing salts on a public highway. Under the proposed changes to the regulations, the exemption will include road salt applied to a property ‘for the purpose of traffic and pedestrian safety under conditions of snow/ice’. This one change, if implemented, would save thousands of dollars in clean-up costs at many sites undergoing redevelopment in Ontario.

The previous Ontario government had also proposed a much-need excess soil regulation. There has been extensive consultation on the proposed regulation over a five-year period. If implemented, the regulation would address the gaps surrounding the ability for enforcement on mismanagement of excess soils in Ontario. It would also open up the opportunity for beneficial reuse of excess soil.

Canada: Environmental Issues In Expropriation

Article by Chidinma Thompson, Borden Ladner Gervais LLP

A. Indirect Expropriation through Environmental Regulation

Claims for indirect expropriation may arise through environmental regulatory regimes. Where legislative schemes operate to interfere with existing property rights, such interference may constitute de facto, or indirect, expropriation. One example of a legislative regime that has been the subject of indirect expropriation claims is the federal Species at Risk Act1 (the “SARA”). Under the SARA, the Governor in Council is empowered to make emergency orders to provide for the protection of certain wildlife species.2 The emergency protection order may extend not only to Crown land, but also private property.3 The SARA provides for a limited compensation scheme. The Minister may provide for reasonable compensation for losses suffered “as a result of any extraordinary impact of the application of” the emergency protection order.4 The Governor in Council may make regulations with respect to the procedures to be followed and the methods to be used to determine the compensation.5

The sage grouse order exemplifies how a SARA emergency protection order may give rise to an expropriation claim. The sage grouse order was the first emergency protection order to be issued under section 80 of the SARA. It was issued to protect the greater sage grouse population in Alberta and Saskatchewan, and came into force on February 18, 2014. The sage grouse is an endangered species under the SARA and Alberta’s Wildlife Act.6 Under the Wildlife Act it is an offence to “willfully molest, disturb, ore destroy a house, nest or den” of sage grouse. The sage grouse order restricted activities on 1,672 km2 of provincial and federal Crown lands in southeastern Alberta and southwestern Saskatchewan.

A Sage Grouse (Photo Credit: Miles Tindal / Calgary Herald)

In The City of Medicine Hat et al v Canada (AG) et al,7 LGX Oil and Gas and the City of Medicine Hat, which had interests in the Manyberries oil production site that was affected by the sage grouse order, brought a judicial review and constitutional challenge of the sage grouse order at the Federal Court of Canada. The applicants successfully resisted a summary dismissal motion brought by the Crown and subsequently commenced an action at the Alberta Court of Queen’s Bench for $123.6 million in compensation (including accelerated reclamation costs) for de facto expropriation of existing oil and gas mineral rights, leases and rights-of-way. This case is ongoing. At this point, the Governor in Council has not made regulations with respect to compensation. The Crown pleads that the emergency protection order is regulatory and, in the alternative, that compensation under the SARA is discretionary. In the further alternative, the Governor in Council had chosen not to make regulations, and the emergency order did not have an “extraordinary impact” on the plaintiffs.

Another case was Groupe Maison Candiac Inc v Canada (AG).8 This case concerns the second emergency protection order made under the SARA, which protects the western chorus frog. The western chorus frog is listed on the SARA’s list of endangered species as a threatened species in the provinces of Ontario and Quebec. The emergency protection order prohibits excavation, deforestation and construction within a two km2 area in the municipalities of La Prairie, Candiac and St-Philippe, Quebec to protect the frog and its habitat. This order was the first time a SARA emergency protection order restricted development on private land.

As a result of the western frog order, Groupe Maison Candiac Inc. (“Groupe Maison”) was forced to reduce its residential development by 171 units after construction was already underway and Groupe Maison had obtained the requisite municipal and provincial approvals. Groupe Maison brought a judicial review of the emergency protection order by way of a constitutional challenge and an expropriation claim. The Federal Court dismissed the application, finding that: (1) section 4(c)(ii) of the SARA is within the federal government’s jurisdiction over criminal law; and protected by the doctrine of ancillary powers, including jurisdiction over peace, order and good governance; (2) the western chorus frog order did not amount to expropriation that required compensation; and (3) the Parliament had already provided a mechanism for compensation under the SARA that applies in “extraordinary circumstances.”

In 2017, the Minister of Environment and Climate Change received three petitions to recommend to the Governor in Council for an emergency order to protect the southern mountain woodland caribou population. The Minister conducted an Imminent Threat Assessment and, on May 4, 2018, determined that the southern mountain caribou faced imminent threats requiring intervention for recovery. An emergency protection order may be forthcoming for Alberta and British Columbia. The SARA public registry and the Canada Gazette will provide updates on this matter.

B. Polluter Pays in Expropriation of Contaminated Lands

Alberta’s Environmental Protection and Enhancement Act9 (the “EPEA”) is another environmental protection legislation that affects expropriation claims. As one of its purposes, the EPEA adopts the “polluter pays” principle to address contamination. The EPEA includes three regulatory mechanisms with respect to contamination: (1) Part 5 Division 1 concerns the release of substances generally; (2) Part 5 Division 2 concerns contaminated sites designation; and (3) Part 6 deals with conservation and reclamation. Further, the EPEA expressly acknowledges an affected person’s recourse to court through private civil claims.10 Some of the key concepts related to the three regulatory mechanisms are considered below.

Part 5 Division 1 of the EPEA deals with the release of substances into the environment. Under section 112, the person responsible for the substance has the duty to take remedial measures with respect to any release of same.11 Environmental protection orders may also be issued to the person responsible for the substance where the release is causing, has caused or may cause an adverse effect.12

The statutory definition of “person responsible” includes: (1) owner and previous owner of substance; (2) every person who has or has had charge, management or control of the substance; (3) successor, assignee, executor, administrator, receiver, receiver‑manager or trustee of (1) to (2); and (4) principal or agent of (1) to (3).13 The “person responsible’ excludes, unless they release new or additional substances: (1) a municipality in respect of land shown on its tax arrears list, or land acquired by it by dedication or gift of an environmental reserve, municipal reserve, school reserve, road, utility lot or right of way; (2) a person who investigates or tests the land for the purpose of determining the environmental condition of that parcel; and (3) the Minister responsible for the Unclaimed Personal Property and Vested Property Act, with respect to a parcel of land to which that Act applies. Thus, it appears that the notion of “person responsible” is based on one’s relationship to the substance/release only, and not based on the cause of the release.

Part 5 Division 2 of the EPEA provides for the designation of contaminated sites. Under section 129 of the EPEA, the Director may designate a site as a contaminated site and issue an environmental protection order to a person responsible for the contaminated site. The Director must consider several factors before issuing an environmental protection order for a contaminated site, including: (1) due diligence of the owner or previous owner; (2) whether the presence of the substance at the site was caused solely by the act or omission of another person, other than an employee, agent or person with whom the owner or previous owner has or had a contractual relationship; and (3) the price the owner paid for the site and the relationship between that price and the fair market value of the site had the substance not been present.14

The “person responsible for the contaminated site” means: (1) a person responsible for the substance that is in, on or under the contaminated site; (2) any other person who the Director considers caused or contributed to the release of the substance into the environment; (3) the owner of the contaminated site; (4) any previous owner of the contaminated site who was the owner at any time when the substance was in, on or under the contaminated site; (5) a successor, assignee, executor, administrator, receiver, receiver‑manager or trustee of a person referred to in any of subclauses (2) to (4); and (6) a person who acts as the principal or agent of a person referred to in any of subclauses (2) to (5). As was the case with Division 1, the definition of “person responsible for the contaminated site” again excludes municipalities and investigators. In this case, the test is based on the relationship to the substance/release and the property.

In practice, Division 2 is rarely used. Designation will only occur as a last resort when there are no other appropriate tools. There have only been five instances of designation of a contaminated site since 1993 and no environmental protection order appears to have been issued under Division 2. Division 2 offers options otherwise unavailable, including the allocation of responsibility to present and past site owners who may have contractually assumed liability for the pollution, remedial actions plans and agreements with the Director, and the apportionment of costs of remedial work among responsible parties. The Minister may also pay compensation to any person who suffers loss or damage as a direct result of the application of Part 5 Division 2.15

Environmental contamination may affect the valuation of expropriated property. Under the Expropriation Act,16compensation for expropriation is based on the market value of the expropriated land, which is in turn “the amount realized if sold in the open market by a willing seller to a willing buyer”,17 and provable damages. The determination of market value accounts for everything that is present in the site, except for the legislated exclusions found in section 45 of the Expropriation Act.

Contamination introduces issues in valuing expropriated property, given the uncertainty in liability exposure, scope, duration, risk and stigma. Below are some case law on the interaction between the expropriation of contaminated lands and the “polluter pays” principle.

In Toronto (City) v Bernardo,18 the respondent Bernardo was the registered owner of a property and permitted the corporate respondent’s scrap metal business on property rent-free by oral licence to occupy. The City of Toronto served and published notice to expropriate property. The City conducted environmental testing on property which showed contamination, and was advised that clean-up costs for property could be in range of $250,000 to $750,000. The appraised value of the property was $242,500 before taking into consideration site remediation or clean-up costs. Given the estimated cost of remediation which exceeded value of land, the City’s offer of compensation to the respondents was $1. The respondents did not request compensation hearing but refused to surrender possession. The City brought motion for order to take possession. The Ontario Supreme Court granted the City’s motion as the respondents had the opportunity to contest the City’s offer of compensation in proceedings before the Ontario Municipal Board and chose not to take any action to assert claims for compensation.

In Thompson v Alberta (Minister of Environment),19 the claimant had purchased land for the sum of $1 million. At the time of purchase, the land was not part of any property acquired by the Crown for a proposed transportation corridor. The Crown reviewed roadway plan within months of claimant’s purchase and determined that land was a necessary part of the corridor. The Crown expropriated land for $1,025,000. The claimant brought action for increased compensation. The action was allowed in part. The claimant was granted $1,120,000. The Crown’s valuation discounted the value of the property because of the unknown cost of filling or remediating a wetland (which is 50% of the property) for future residential development, which posed an economic challenge for a prospective purchaser. The Court found that the cost of remediation calculated by the Crown was based on premature assumption that land was to be developed in isolation with no possible cost sharing by adjacent developers. The Court, however, recognized that a discount must be applied for market value because of this possibility of remediation.

In Ville de Saint-Jean-sur-Richelieu c Cour du Québec,20 the subject property included a grocery store, snack-bar and a retail marina fuel distribution outlet for vessels navigating on Chambly canal, and a gas station for road vehicles. The issue before the Court was whether the costs of decontamination should be deducted from the compensation awarded for expropriation, based on the duty to remediate. It was argued that evidence demonstrated that there was a spill onto the neighbouring property, therefore the question as to cessation of activities no longer applied, and the mandatory provisions of the EQA regarding decontamination was triggered. The Tribunal Administratif du Québec (the “TAQ”) ruled that the total remediation cost of $450,000 be paid by the owner of the property, 9092-9340 Québec Inc. (“9092”) and should be deducted from its expropriation indemnity award. The value of the expropriated property, after deduction of the decontamination costs, was established as being $31,000.


Lock 9, the southern terminus of the Chambly Canal, is located in the town of St.-Jean-Sur-Richelieu.

The Court of Quebec allowed the appeal, holding that the finding of the TAQ was unreasonable and profoundly unfair. Were it not for the expropriation, 9092 could have ceased its activity at its own time, negotiated with a willing purchaser and, based upon the projects of the purchaser, negotiated the decontamination works remaining according to the circumstances. The City deprived 9092 of its right to complete the decontamination work at the time that it deemed the most suitable to its interests and subject to conditions that would have been more favourable. By forcing 9092 to assume the costs of decontamination estimated by the City engineer, the TAQ deprived the owner of the quasi-totality of the value of the expropriated property. The City brought a judicial review application which was subsequently dismissed. The Court found that the systemic analysis undertaken by the Court of Quebec highlights the significant defects and the fragility of the TAQ ruling to assign full liability to 9092 for the estimated costs of decontamination of the property.

Case law suggests that the law is not blind to the causation of the contamination when evaluating the market value of an expropriated property that has been contaminated. Liability for the remediation of contaminated land in Alberta clearly rests with “person responsible for the substance” and, in the rare case of designated contaminated sites, “person responsible for the contaminated site.” Liability for contamination does not run with the land in Alberta.

This leads to the question of what is the intent of the law in respect of a faultless landowner for the environmental depreciation of land in the expropriation context. The principles of statutory interpretation apply to deem the legislature as knowing all the law and the necessary statutory language to give effect to its intention. The EPEA and the Expropriation Act are meant to be interpreted harmoniously as a scheme in cases of expropriation involving contamination. The Expropriation Act is a remedial statute. Accordingly, it must be given a broad and liberal interpretation consistent with its purpose.

Currently, the right of a faultless landowner to recover from a “person responsible” remediation costs in civil claims (whether under the common law or the EPEA) is a chose in action. This chose in action does not appear to be considered in the calculation of market value in expropriation. In the new era of third-party litigation funding, a chose in action for remediation costs is a valuable element that may offset some or all of the discounts associated with contaminated land, even in an open market.

Footnotes

1 Species at Risk Act, SC 2002, c 29 [SARA].

2 SARA, s 80(1).

3 SARA, s 80(4)(c)(ii).

4 SARA, s 64(1).

5 SARA, s 64(2).

6 Wildlife Act, RSA 2000, c W-10.

7 The City of Medicine Hat et al v Canada (AG) et al, Federal Court of Canada File No. T-12-14. See also Federal Court of Canada, Proceeding Queries, Recorded Entries for T-12-14, online: click here.

8 Groupe Maison Candiac Inc v Canada (AG), 2018 FC 643.

9 Environmental Protection and Enhancement Act, RSA 2000, c E-12 [EPEA].

10 EPEA, ss 217, 219, 227-228.

11 EPEA, s 112.

12 EPEA, ss 113-114.

13 EPEA, s 1(tt).

14 EPEA, s 129(2).

15 EPEA, s 131.

16 Expropriation Act, RSA 2000, c E-13.

17 Expropriation Act, ss 41-42.

18 Toronto (City) v Bernardo, 2004 CanLII 5760 (ONSC).

19 Thompson v Alberta (Minister of Environment), 2006 ABQB 510.

20 Ville de Saint-Jean-sur-Richelieu c Cour du Québec, 2017 QCCS 4832.


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

This article was first published on the BLG website. It is re-published with the permission of the author.

About the Author

Chidinma Thompson is a partner in Commercial Litigation Group at Borden Ladner Gervais LLP‘s Calgary office. She practices commercial litigation and arbitration, project approvals, environmental defence and compliance advisory. Her practice covers a broad range of sectors including oil and gas, electricity, renewable energy, municipal and land development. She has experience in regulatory hearings before the Alberta Energy Regulator and its predecessors, Alberta Utilities Commission, and the Calgary Subdivision and Development Appeal Board. She has appeared before the Alberta Provincial Court, Court of Queen’s Bench and the Court of Appeal.

Is Ontario “Open for Business” when it comes to Excess Soil Management?

by  Grant Walsom, XCG Consultants

Since the 2013 call for a review in the regulatory gaps surrounding the ability for enforcement on mismanagement of excess soils in Ontario, the Ministry of Environment (now called Ministry of Environment, Conservation and Parks – MECP) has tirelessly worked towards a proposed Excess Soil Regulatory package for Ontario.  The efforts have included an unprecedented process of stakeholder listening sessions, consultations and engagement group meetings and inter-Ministerial reviews over the past 5 years.

The proposed Excess Soil Regulatory Package was formed through 2 separate postings on the Environmental Bill of Rights (EBR) and is reportedly ready for Cabinet Approval.  Further, the regulatory package is formulated with general overall acceptance by the construction and development industry in Ontario as well as the supporting industries (i.e., legal, consulting, laboratories) and municipalities.  It is generally agreed that the proposed Regulation outlines possible opportunities for beneficial reuse with sustainable considerations (examples would be reduced truck traffic and reduced greenhouse gases creation).

We are coming to understand that the current Conservative Provincial Government is strongly opposed to a majority of initiatives created by the previous Liberal Government.  The Conservatives are in favour of the red-tape reduction, streamlining operations and fiscal responsibility.  In fact, there is now a Deputy Minister of Red Tape and Regulatory Burden Reduction in the Ontario Cabinet.  His job is to make Ontario “Open for Business.”  Any new Regulation such as those being reviewed by MECP could certainly be viewed as counter-productive in terms of red-tape reduction.    However, with the release of the Made-in- Ontario Environment Plan on November 29, 2018, it appears that Excess Soil Regulation will be enacted in some form in the not-to-distant future.  There will no doubt be some changes to the proposed Regulatory package, but it is good to see that Regulation will proceed.

To date, one of the biggest challenges that the enforcement regime of the Environment Ministry had was the gap in how excess soil (impacted with contaminants or not) could be classified as a “waste material” if it’s not managed properly or if it’s illegally dumped.  We have all seen the extensive media coverage of a number of illegal dump sites, innocent property owners mislead on the quality of the fill they are accepting, and private air-fields who have capitalized on the regulatory gaps in Ontario where excess soil is concerned.  Enforcement against illegal dumping or misrepresentation of the soil quality is not clear or easily achieved under the current Environmental Protection Act and regulations such as Regulation 347 (Waste Management).  Minor amendments to Regulation 153/04 (Brownfields Regulation) have also been proposed to assist in streamlining and simplifying filing of Records of Site Condition and redevelopment of Brownfield properties.  Further definitions of soil, waste and inert fill are also forthcoming in the new proposed Excess Soil Regulatory package.

One of the main benefits of the proposed Excess Soil Regulation is the clarity it provides in the expectations of appropriate management of excess soil along with the steps that would be followed to provide the level of certainty that the public would expect.  It puts a heavy onus on the generator of the excess soil (or the source site) to assess the quality against a set of new standards.  The Standards were developed as a subset of the O. Reg. 153/04 Brownfield Standards, aimed at assisting in identifying acceptable and beneficial re-use of the excess soil.

Beneficial reuse of excess soil has a strong consideration for soil quality in terms of chemical testing to assess for contaminants; however, Ontario soils are highly variable with respect to the geotechnical quality for engineered reuse (i.e., silt, clay, sands, gravels and poor quality mixed fill).  Recovered excess soil may require some screening/grading to classify the geotechnical qualities prior to identifying an appropriate engineered and beneficial reuse.  Market-based solutions and opportunities for excess soil supply and demand services are sure to be identified as creative Ontarians have historically shown innovation in finding geotechnical solutions for excess soil.  The new regulatory package allows for this to happen to the benefit of both sender and receiver parties. Increasingly, clients are also choosing to avoid moving soils by employing methods to limit or even eliminate the amount of soils that have to be moved from a poor fill site with things like landscaped architectural features or ground improvement to treat soils in place.

Another benefit of the proposed excess soil regulation is the placement of the responsibility to ensure and “certify” the quality of the excess soil and the appropriate handling and re-use of the material by the source site or generator.  This requires a shift in the thinking around management of any excess soil materials to be assessed and pre-planned at the beginning of a project, versus at the last minute and left to the excavation contractor, as has historically been done.  The shift in thinking and pre-planning may take time, but with the assistance of the “Qualified Person” community in Ontario, the planning can be simplified.  The industry is already starting to shift to a more responsible management of excess soils, with the knowledge of potential Regulatory changes. The proposed Excess Soil Regulatory package has a well-defined transition period of two full years to be fully enacted, giving the construction and development industry time to become used to the shift in thinking and pre-planning as well as the procurement groups to ensure that the appropriate assessment and characterization activities are completed.

The benefits of many aspects of the proposed Excess Soil Regulatory package are clear and are desired in Ontario.  The business community has hoped that the current Conservative Government in Ontario understands that the Excess Soil Regulatory package has been requested by the citizens of Ontario, and formulated through an exhaustive consultation and engagement of the various stakeholders in the Province. It has also been hoped that the current Provincial Government sees the value in many aspects of the proposed regulatory package for management of excess soils.  With reference to Excess Soil Regulation in the Environment Plan, it certainly appears that the current Provincial Government does see the value.  Further, the complimentary minor amendments to the soil and waste definitions are needed as are the proposed amendments to the Brownfield Regulation.

Since the June 2018 election, the construction and development industries in Ontario have been patiently waiting for clarity on how the current Provincial Government plans to proceed.  It is clear that this new legislative change will help to make Ontario open for business and it appears that the current Provincial Government agrees.  We will now see what changes to the proposed Regulatory Package will be made, hopefully, sooner than later.

This article was first published in the Geosolv website.

About the Author

Grant Walsom, P.Eng., is a Partner at XCG Consulting Limited and recognized as a Qualified Person in Ontario under the Record of Site Condition Regulation (O. Reg. 153/04). He proudly serves on the Board of Directors at the Ontario Environment Industry Association (ONEIA) and the Canadian Brownfields Network (CBN). Grant can be reached at grant.walsom@xcg.com.

Canadian NCC Awards Contracts for Environmental Site Assessment

The Canadian National Capital Commission recently award contracts to a number of environmental consulting firms to conduct environmental assessment of contaminated sites in Ottawa.  A number of firms were awarded contracts of $833,333 for providing contaminated site assessment services.  The firms were DST Consulting Engineers Inc., Geofirma Engineering Ltd., GHD Ltd., Golder Associates Ltd., SNC-Lavelin Inc., and Terrapex Environmental Ltd.

Under the contracts, the NCC may request as part of the purchase order process, but is not necessarily limited to the following consultant services under the resulting Agreements:

  • Provide environmental reports (either English or French);
  • Contaminated Site Identification and characterization associated with various sources of contamination;
  • Historical review of site activities, including consultation with municipal, provincial and federal regulatory agencies;
  • Field surveys;
  • Site investigations (sampling of contaminated or potentially contaminated media);
  • All parameters analyzed should be compared to both the Canadian Council of Ministers of the Environment (CCME) Federal Guidelines as well as the applicable provincial criteria;
  • Interpretation of laboratory analyses;
  • Contaminated area delineation for soil and groundwater, which includes coloured maps that clearly identify and illustrate the testing locations, the contaminants found, the dimensions of the contaminated volumes and the affected area;
  • Recommendations of further investigations, if required, with all the associated costs;
  • Provide guidance and expertise with Federal Regulation compliance;
  • Provide maintenance and repair services for existing monitoring infrastructure;
  • Evaluation of remediation technologies, which includes, identifying the different remediation options and the costs associated;
  • Evaluation of strategies to optimize recycling of material during remediation projects;
  • Completion of risk assessments (human health and ecological) under federal and provincial guidelines;
  • Provide Engineering Plans and Specification documents for remediation and construction projects (French & English);
  • Provide site surveillance during remediation and construction activities;
  • Provide project management and construction management services;
  • Provide landfill engineering and management services; and,
  • Provide long-term management strategies for complex contaminated sites.

The NCC has a number of development and rehabilitation projects underway in Ottawa including the redevelopment of LeBreton Flats, a property just west of Parliament Hill in Ottawa.  The property is contaminated from historical industrial activity and must be remediated before it can be redeveloped into a commercial and residential community.

In the past, the NCC spent $6.7 million to decontaminate the soil on a 5.7-hectare site. The process involved removing and remediating 110,000 cubic metres of soil.

With the current area awaiting remediation being just over three times that size at 21 hectares, RendezVous LeBreton, the development company that is partnering with the NCC to develop the site, has a considerably larger and undoubtedly more expensive amount of soil to remediate.

As of the Spring of 2018, the total cost of the soil decontamination at LeBreton Flats is undetermined at this time, but is estimated to be around $170 million, according to RendezVous LeBreton Group.

The empty land in LeBreton Flats awaits its redevelopment, but the soil that lies beneath its surface is in need of a cleanup, as well. Photo By: Meaghan Richens, Centretown News

 

Canada takes final steps to ban Asbestos

by Paul Manning, Manning Environmental Law

Environment and Climate Change Canada, along with Health Canada, published the Prohibition of Asbestos and Products Containing Asbestos Regulations in the Canada Gazette, Part II on October 17, 2018.

These new regulations apply to any person who manufactures, imports, sells or uses asbestos or products containing asbestos.

Thetford, Quebec open pit asbestos mine

The regulations prohibit the import, sale and use of all forms of asbestos as well as the manufacture, import, sale and use of products containing asbestos, with a limited number of exclusions:

  • ongoing exclusions for
    • the transfer of physical possession or control of asbestos or a product containing asbestos to allow its disposal
    • the re-use of asbestos in existing road infrastructure into new road infrastructure or in asbestos mining site restoration
    • the import, sale or use of military equipment serviced overseas with a product containing asbestos if there were no technically or economically feasible asbestos-free alternatives available
    • the import, sale or use of asbestos and products containing asbestos for display in a museum or for use in a laboratory
  • exclusions until
    • December 31, 2022 for the import, sale or use of products containing asbestos to service equipment in nuclear facilities, or to service military equipment, if there are no technically or economically feasible asbestos-free alternatives available,
    • December 31, 2029 for the import and use of asbestos for chlor-alkali facilities using asbestos diaphragm technology

The regulations include:

  • permit provisions for unforeseen circumstances where asbestos or a product containing asbestos is used to protect human health or the environment, if there is no technically or economically feasible asbestos-free alternative available
  • permit provisions for the import and use of products containing asbestos to service military equipment and equipment in a nuclear facility, if there is no technically or economically feasible asbestos-free alternative available
  • provisions requiring the submission of reports from museums, laboratories, and military, nuclear and chlor-alkali facilities, as well as permit holders, who import, use or display asbestos or products containing asbestos. The preparation and implementation of an asbestos management plan is also required in most cases

The regulations do not apply to:

  • asbestos integrated into a structure or infrastructure before the day on which the Regulations come into force (such as asbestos integrated into buildings and civil engineering works), or to products containing asbestos used before the day on which the regulations come into force (such as equipment installed in a facility, vehicles, ships, and airplanes)
  • asbestos and products containing asbestos in transit through Canada
  • mining residues, except for certain high risk activities which are prohibited, including:
  • the sale of asbestos mining residues for use in construction and landscaping activities, unless authorized by the province, and
  • the use of asbestos mining residues to manufacture a product that contains asbestos

In addition to these regulations, the existing Export of Substances on the Export Control List Regulations (ESECLR) and Schedule 3 to the Canadian Environmental Protection Act, 1999 were amended to prohibit exports of asbestos, with a limited number of exceptions.  These provisions ensure that Canada continues to meet its export obligations under international conventions, including the Rotterdam Convention. The regulations and related amendments to the ESECLR come into force on December 30, 2018.

This article is republished and first appeared on the Manning Environmental Law website.

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About the Author

Paul Manning is the principal of Manning Environmental Law and an environmental law specialist certified by the Law Society of Upper Canada. Paul has been selected as one of the world’s leading Environmental Lawyers by Who’s Who Legal: 2016.

Paul advises clients on a wide range of environmental law issues and represents them as counsel before tribunals and the courts. His practice focuses on environmental, energy, planning and Aboriginal law.

Paul holds a Masters degree in Environmental Law and obtained an accreditation in the UK as an expert in Planning Law. He is on the Executive Committee of the National Environmental, Energy and Resources Law Section of the Canadian Bar Association. Paul has a special interest in renewable energy and climate change regulation and holds a Certificate in Carbon Finance from the University of Toronto.

Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital

The International Institute for Sustainable Development (IISD) recently released a report entitled Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital.

The report makes the statement that governments around the world are looking at opportunities to attract private capital participation in both land remediation and its productive use and redevelopment thereafter. The business case is intrinsically the value capture in the increase in retail price of land and related business opportunities once the remediation is complete. However, where land value capture is lower and related revenue streams remain uncertain, the case for private capital participation is much less compelling. Governments, in this case, have to fund the remediation through public budgets and thereafter seek opportunities to partner with private counter-parties to use the land as “fit for purpose.”

The IISD report presents 17 case studies on a variety of financing instruments that blend public and private capital. Each case study includes a short discussion on the extent to which each instrument could be used to finance the remediation of contaminated soil. The case studies in thereport demonstrate a variety of financing strategies, from index-linked bonds to savings accounts and from peer-to-peer lending platforms to debt-for-nature swaps. Find out more about Loanpad by reading this review, if peer-to-peer lending is something you have been considering to do for your business.

This report is a part of a series of outputs of a four-year project, Financing Models for Soil Remediation. The overall objective of the project is to harness the full range of green finance approaches and vehicles to manage the associated risk and fund the remediation of contaminated soils.

The series of reports focuses on the financial vehicles available to attract investment to environmental rehabilitation of degraded land and the financial reforms needed to make these vehicles a viable and desirable means of investing in land rehabilitation. The IISD draws on best practices worldwide in funding environmental rehabilitation, with a special focus on the design and use of financial mechanisms to attract private investors, share the risk and offer a clear benefit for the rehabilitated land. If you would like to make some investments, with regards to personal investment then you may want to check out some mutual funds.

Several lessons emerge from these case studies described in the report in the context of financing the remediation of contaminated land, including the following:

  1. As with all financial arrangements, the risk appetite of different investors has to match the risk profile of
    the investment. It is difficult to crowd in private and institutional investors when projects remain below
    investment grade.
  2. Money follows a good deal. When legal, technological, revenue and other risks are understood and are
    transparent, feasible ways to reduce these uncertainties can be planned and financing strategies can be
    worked upon.
  3. When there is reasonable certainty that the value of the land will increase after remediation and will
    subsequently generate stable and predictable revenues, there is a strong case for blending public and
    private financing.
  4. When, on the other hand, projects have less attractive revenue potential, governments have to step in to
    finance the remediation, or at least a larger part of it.

About the IISD

The International Institute for Sustainable Development (IISD), headquartered in Winnipeg, Manitoba, is an independent think tank championing sustainable solutions to 21st–century problems. The mission of the IISD is to promote human development and environmental sustainability. IISD focuses on research, analysis, and knowledge products that support sound policy making.

Kitchener, Ontario’s Largest Brownfield Redevelopment

Kitchener, Ontario’s biggest abandoned industrial site is well on its way into being redeveloped into a 50,000-square-foot facility for a tool and die company and a 3,150-square-metre medical office building.

The 78-acres industrial site is located on the southeast corner of Bleams Road and Homer Watson Boulevard in Kitchener, approximately 100 km west of Toronto.  It was developed with a 1.2 million square foot manufacturing facility that was constructed in several phases beginning in 1967.  The facility had been used by Budd Canada to manufacture auto parts, ThyssenKrupp Budd Canada, and eventually by Kitchener Frame.  The land has sat idle since 2009.

2010 Photo of fhe former Kitchener Frame Building (Photo Credit: Philip Walker/Record staff

In 2010, a group of investors purchased the property with the vision of redeveloping it.  It has taken eight years for the redevelopment to reach its current state – a series of approvals from various levels of government and a plan to start construction in early 2019.

The site is still waiting approval of the Record of Site Condition (RSC) from the Ontario Ministry of the Environment, Conservation and Parks (MOECP). It was filed in January of 2018.  An RSC is typically required by on Ontario Municipality if a property is being redevelopment for a more sensitive land use (i.e., from industrial to commercial or residential).  It is filed by an environmental consultant following the clean-up of a property.  It summarizes the environmental condition of a property based on the completion of environmental site assessments (i.e., Phase I & II ESAs).

Site Clean-up

Demolition work and subsequent site cleanup got underway in November 2011. The environmental remediation cost an estimated $8.5 million.

A soil remediation program was conducted at the property between April and June 2016 in an attempt to reduce the
concentrations of the contaminants of concern s in soil identified at the property. The remediation activity at the site included the excavation of approximately 9,360 cubic metres (5,200 tonnes) of contaminated soil for disposal at a licensed non-hazardous waste landfill.  No sediment or groundwater was remediated or removed for the purpose of remediation.

The clean-up of the site included the preparation of a Streamlined Tier 3 Risk Assessment Report.   A risk assessment provides an approach for developing property specific standards (PSS) under Ontario Regulation 153/04 (Records of Site Condition (RSC) – Part XV.1 of the Act), made under the Environmental Protection Act (the Regulation). A Tier 3 Risk Assessment goes beyond the generic approach of a Tier 2 risk assessment and involves a longer and more detailed review by the MOECP. According to the filed RSC, the MOECP has approved of the Streamlined Tier 3 Risk Assessment.

As reported in the Kitchener Post, a total of $7,787,000 in direct remediation costs are eligible to be reimbursed by the city and region under a joint tax increment grant application. The total estimated post redevelopment assessment value is estimated at more than $111 million.

Redevelopment

In an interview with the Daily Commercial News, Janinen Oosterveld, manager of site development and customer service in Kitchener-Waterloo’s planning division stated: “Approvals to finalize the subdivision of the lands into development parcels is currently underway.”

As of mid-October, the city had received site plan applications for two developments — a 50,000-square-foot facility for a tool and die company and a 3,150-square-metre medical office building.

Plans for the redevelopment envisage nine industrial parcels, totaling approximately 39 acres.

Future redevelopment of the former industrial property on Homer Watson Boulevard, Kitchener, Ontario (Photo Credit: Bill Jackson/Metroland)

 

When Oil and Water Mix: Understanding the Environmental Impacts of Fracking

Dan Soeder, director of the Energy Resources Initiative  at the South Dakota School of Mines & Technology, has co-authored the cover article titled “When oil and water mix: Understanding the environmental impacts of shale development,” in the recent issue of GSA Today, a magazine published by the Geological Society of America.

The article explores what is known and not known about the environmental risks of fracking with the intent of fostering informed discussions within the geoscience community on the topic of hydraulic fracturing, says Soeder. Soeder’s co-author is Douglas B. Kent of the United States Geological Survey.

In this paper, Soeder and Kent bridge the gap in consensus regarding fracking, providing current information about the environmental impacts of shale development. The article is open access and adheres to science and policy, presenting a complicated and controversial topic in a manner more easily understood by the lay person.

“Geoscientists from dinosaur experts to the people studying the surface of Mars are often asked by the public to weigh-in with their opinions on fracking. We wanted the broader geoscience community to be aware of what is known and not known about the impacts of this technology on air, water, ecosystems and human health.  A great deal has been learned in the past decade, but there are still critical unknowns where we don’t yet have answers,” Soeder says.

Development of shale gas and tight oil, or unconventional oil and gas (UOG), has dramatically increased domestic energy production in the United States and Canada.  UOG resources are typically developed through the use of hydraulic fracturing, which creates high-permeability flow paths into large volumes of tight rocks to provide a means for hydrocarbons to move to a wellbore. This process uses significant volumes of water, sand, and chemicals, raising concerns about risks to the environment and to human health.

In the article, Soeder and Kent address the various potential impacts of fracking and how those impacts are being addressed.  Risks to air include releases of methane, carbon dioxide, volatile organic compounds, and particulate matter. Water-resource risks include excessive withdrawals, stray gas in drinking-water aquifers, and surface spills of fluids or chemicals. Landscapes can be significantly altered by the infrastructure installed to support large drilling platforms and associated equipment. Exposure routes, fate and transport, and toxicology of chemicals used in the hydraulic fracturing process are poorly understood, as are the potential effects on terrestrial and aquatic ecosystems and human health.

Schematic diagram illustrating unconventional oil and gas (UOG) development activities relevant to research on human-health and environmental impacts (not to scale): well-pad construction (1); drilling (2); completion/stimulation (3, 4); production of natural gas (5) and oil (6) with well casings designed to protect drinking-water aquifers; ultimate closure (plug and abandon), illustrating legacy well with leaking casing (7); wastewater disposal (8); induced seismicity (9); landscape disturbance (10); and potential for transport pathways from deep to shallow formations (11). Also represented are water supply wells in shallow and deep aquifers (12). Photographs by Dan Soeder.

 

Brantford Showcases its Brownfield Projects

Known as the Telephone City, Brantford may also become famous as one of the first municipalities in Canada to proudly showcase its brownfield projects.

Instead of hiding from its industrial past, the city is showcasing several brownfield projects and is encouraging residents and visitors to take the self-guided tour.  Eight projects in various stages of remediation or redevelopment are highlighted in the  tour.

Highlights of the the tour are the Greenwich Mohawk Site, Sydenham-Pear Site and Edward Gould Park.  The Greenwich Mohawk Site alone is over 50 acres and was remediated over the course of two years, starting in 2014.

 

 

 

The City is investing $5,000 per year to promote the tour and hopes to attract interested individuals, school groups, and others.  The tour itself provides participants with access to historical photos, newspaper articles and other project details through the tour website.

Users can access the Brownfields Discovery Tour online at Brantford.ca/BrownfieldsTour where they can follow along digitally or print a hard copy of the tour.

“The City of Brantford has become widely recognized as a leader for remediation, redevelopment and public education of brownfields,” said Amy Meloch, chair of the brownfields community advisory committee in an interview with the Brantford Expositor. “The tour is an exciting continuation of the work of the committee to raise awareness to both residents and visitors of the extensive work already accomplished in the city.”

The sites on the tour include those that are municipally and privately owned.  They are:

  • 186 Pearl St. – a 0.38-hectare site located in a residential area, this site was home to Brantford Emery Wheel Co. (1910-1920) and the Brantford Grinding Wheel Co. (1920-1939). Bay State Abrasives was involved in similar manufacturing operations there. The city removed an underground storage tank, removed the existing structures, cleaned the contaminated soil and planted sod at a cost of about $175,000. The property has been converted into a park.
  • 347 Greenwich St. and 22 and 66 Mohawk St. – Referred to collectively as the Greenwich Mohawk Brownfield Site, the companies and industry formerly housed on these properties are a significant part of the city’s history. The 27.9-acre 347 Greenwich property is the former site of Massey-Harris Co., established in 1891. It employed thousands of Brantford employees over the years. A 2005 fire destroyed most of the buildings and the city acquired the property in 2007.
  • 22 Mohawk St. – This 7.25-acre property has been home to Adam’s Wagon Co. and Brantford Coach and Body, later Canada Coach and Body, where military vehicles were manufactured during the Second World War. Later, Sternson Group was there.
  • 66 Mohawk St – The Brantford Plow Works, later Cockshutt Plow Co., was established here in 1877, making high-quality farm implements. The farm division was sold to White Farm Equipment in 1962. That company went bankrupt in 1985. The city acquired all three properties by 2007 and a two-year remediation started in 2014 at a cost of $40.5 million.
  • Sydenham Pearl site – Consists of two properties: 17 Sydenham St., the former Crown Electric, and 22 Sydenham, the former Domtar (Northern Globe) site. The sites served as the main locations for mass industry for almost a century. The city took over the properties 2004 and 2006. Remediation was done in 2015 and 2016 and a soil cap was installed. The site will be green space until next steps are explored by the city.
  • 85 Morrell St. – The city sold the property, once occupied by Harding Carpets Limited, to King and Benton Development Corporation, which cleaned and renovated the 10-acre property to include warehouses and offices for industrial use.
  • 168 Colborne St. West – This 11.5-acre property was the site of the former Stelco Fastners manufacturing plant. In 1999, it was purchased by King and Benton. Work is underway to redevelop the site for mixed uses, including multi-storey residential buildings.
  • 111 Sherwood St. – Home to Brantford Cordage Co. during the early 1900s. At its peak, the twine producer employed 700. It has remained active with a variety of commercial and industrial uses, including a brewery and fitness studio.
  • 232-254 Grand River Ave. – In 1891, this 4.87-acre site was developed as a cotton mill by Craven Cotton Mills Co. It then became Dominion Textiles Co. and then Penman’s Manufacturing Co. Textile manufacturing continued on the site for almost 100 years until it was sold to a land developer in 1984. It is now being remediated for a mix of affordable housing and market-rate townhouses.
  • 180 Dalhousie St. – The 0.52-acre site is a consolidation of four properties, which, over the years, housed various residential and commercial operations, including Castelli Bakery, which closed in 2011. Today, a four-storey student apartment building is there.

Greenwich-Mohawk Brownfield Site circa 2013